Organigram to supply Israeli leader Canndoc
with up to 6,000kg of dried flower in multi-year strategic
agreement; Organigram’s largest international deal to date
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), the parent
company of Organigram Inc. (the “Company” or “Organigram”), a
leading licensed producer of cannabis, today announced that it has
entered into a multi-year agreement for supply of dried flower to
one of Israel’s largest and most established medical cannabis
producers, Canndoc Ltd. (“Canndoc”), a subsidiary of InterCure Ltd.
(TASE: INCR/INCR.TA).
Canndoc has been a pioneer in pharmaceutical-grade cannabis for
more than 12 years. Its GMP-approved medical cannabis products are
sold in pharmacies in Israel, and it holds international
cultivation and distribution agreements in the European Union and
Canada.
Under the terms of Organigram’s supply agreement with Canndoc
(the “Agreement”), the Company will provide a guaranteed 3,000 kg
of high quality, indoor-grown dried flower product to Canndoc by
December 31, 2021 for processing and distribution into the Israeli
medical market, and may provide an additional 3,000 kg during the
same time period at Canndoc’s option, subject to certain
conditions. The agreement provides for a tiered pricing scheme and
the exact value will vary depending on factors such as potency and
product mix. The Agreement also contemplates, among other things,
an opportunity for Organigram to launch branded medical products
with Canndoc in the Israeli and EU markets, and grants exclusivity
and related rights to Canndoc within the Israel market for a period
of approximately 7.5 years. Activities under the Agreement are
subject to compliance with all applicable laws, including receipt
of all requisite approvals from Health Canada, the Israeli Ministry
of Health, and any other applicable regulatory authorities.
“Success in international cannabis markets requires a
disciplined assessment of opportunities and the identification of
strong, world-class partners,” says Greg Engel, CEO, Organigram.
“For this reason, we are proud to work with Canndoc, a company who
we believe shares both our focus on the production of high-quality
products and deep commitment to helping patients around the
world.”
Israel’s ongoing commitment to clinical cannabis research and
product innovation has helped it establish its growing reputation
as a global leader in the area.
While research of cannabis for medical use has been legal in
Israel since 1973, the Government of Israel only recently approved
the export of medical cannabis in January 2019. Cannabis innovators
such as Canndoc are now looking at taking advantage of both a
rapidly expanding domestic market and what is generally considered
a vast export market.
“Driven by the mission of meeting patients’ needs and improving
their quality of life, we are pleased and proud to work with
Organigram to help achieve better patient health and treatment
outcomes in Israel, as well as other countries that recognize the
value of these medicines for people in need,” says Ehud Barak,
Chairman, former Israeli Prime Minister and Chairman of the Canndoc
Board of Directors.
“While we have been one of the suppliers for the Australian
medical cannabis market for more than two years, the agreement with
Canndoc represents an important, significant leap into the global
cannabis marketplace for Organigram, allowing us to support not
only medical cannabis patients in Israel but also potentially in
the other major international markets that Canndoc serves,” says
Engel.
About InterCure and Canndoc
InterCure (TASE: INCR) is the first public company on the Tel
Aviv Stock Exchange to hold a valid and permanent license for the
medical cannabis value chain through its 100% ownership in Canndoc.
Canndoc is a GMP medical cannabis producer. Licensed by the Israeli
Ministry of Health since 2008, Canndoc is a leading pioneer in the
research, cultivation, production and distribution of pharma-grade
cannabis-based products to patients, hospitals, pharmacies,
research and governmental organizations.
Through its strategic exclusive collaboration with world
leaders, distribution agreement with SLE (100% owned by Teva
Pharmaceutical Industry) and long term sales agreements, Canndoc is
well-positioned as a leading and significant player in pharma-grade
medical cannabis in Israel, Europe and the United Kingdom.
Visit https://www.canndoc-pharma.com/
About Organigram Holdings Inc.
Organigram Holdings Inc. is a NASDAQ Global Select and TSX
listed company whose wholly owned subsidiary, Organigram Inc., is a
licensed producer of cannabis and cannabis-derived products in
Canada.
Organigram is focused on producing high-quality, indoor-grown
cannabis for patients and adult recreational consumers in Canada,
as well as developing international business partnerships to extend
the Company's global footprint. Organigram has also developed a
portfolio of legal adult use recreational cannabis brands including
The Edison Cannabis Company, Trailer Park Buds, Ankr Organics and
Trailblazer. Organigram's facility is located in Moncton, New
Brunswick and the Company is regulated by the Cannabis Act and the
Cannabis Regulations (Canada).
This news release contains forward-looking information. Often,
but not always, forward-looking information can be identified by
the use of words such as “plans”, “expects”, “estimates”,
“intends”, “anticipates”, “believes” or variations of such words
and phrases or state that certain actions, events, or results
“may”, “could”, “would”, “might” or “will” be taken, occur or be
achieved. Forward-looking information involves known and unknown
risks, uncertainties and other factors that may cause actual
results, events, performance or achievements of Organigram to
differ materially from current expectations or future results,
performance or achievements expressed or implied by the
forward-looking information contained in this news release. Risks,
uncertainties and other factors involved with forward-looking
information could cause actual events, results, performance,
prospects and opportunities to differ materially from those
expressed or implied by such forward-looking information include
factors that change actual supply quantities; risks associated with
international jurisdictions including regulatory risk; receipt of
any required permits or approvals from Health Canada; the Israeli
Ministry of Health and other authorities; general market
conditions; currency fluctuation; counterparty credit risks and
general risks related to COVID-19 and risks as disclosed in the
Company’s most recent annual information form, management’s
discussion and analysis and other Company documents filed from time
to time on SEDAR (see www.sedar.com) and filed or furnished to the
Securities and Exchange Commission on EDGAR (see www.sec.gov).
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. Although the Company believes that the assumptions
and factors used in preparing the forward-looking information in
this news release are reasonable, undue reliance should not be
placed on such information and no assurance can be given that such
events will occur in the disclosed time frames or at all. The
forward-looking information included in this news release are made
as of the date of this news release and the Company disclaims any
intention or obligation, except to the extent required by law, to
update or revise any forward-looking information, whether as a
result of new information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20200609005465/en/
For Investor Relations enquiries, please contact: Amy Schwalm
Vice President, Investor Relations Amy.Schwalm@organigram.ca (416)
704-9057
For Media enquiries, please contact: Ray Gracewood Senior Vice
President, Marketing and Communications rgracewood@organigram.ca
(506) 645-1653
For Canndoc Investor Relations and media enquiries, please
contact: Eran Gabay Vice President, Investor Relations
Office@canndoc-pharma.com (972) 54-246-7378
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